According to the China Cotton Association, from October 9 to 12, the average purchase price for machine-picked cotton in Xinjiang was 6.13 RMB/kg, up 0.08 RMB/kg from the mid-festival period but down 0.16 RMB/kg year-on-year. The average purchase price for hand-picked cotton was 7.04 RMB/kg, down 0.01 RMB/kg from the mid-festival period and down 0.12 RMB/kg year-on-year. The average purchase price for seed cotton in inland regions was 7.03 RMB/kg, up 0.02 RMB/kg from the holiday period.

Xinjiang machine-picked cotton prices rose 0.08 RMB/kg month-on-month but fell 0.16 RMB/kg year-on-year, while hand-picked cotton prices declined 0.01 RMB/kg month-on-month and dropped 0.12 RMB/kg year-on-year. Inland seed cotton prices increased 0.02 RMB/kg month-on-month.

The overall year-on-year decline indicates ample annual supply or weak demand. Cotton futures data show widespread contract price declines (e.g., contract 2511 closed at 13,285 RMB/ton, down 20 RMB; contract 2601 closed at 13,265 RMB/ton, down 30 RMB). While open interest varied, the downward price trend reflects market concerns over oversupply, constituting a generally bearish influence.

The year-on-year decline in cotton, a key raw material, may reduce yarn production costs and benefit corporate profit margins. However, cotton yarn futures prices also fell (e.g., contract 2511 closed at 19,675 RMB/ton, down 55 RMB; contract 2601 closed at 19,290 RMB/ton, down 45 RMB), with some contracts experiencing low trading volumes. This reflects insufficient end-demand or weak market confidence. The overall impact is slightly bearish, as the positive effect of reduced costs is partially offset by weak demand.

As an integrated internet platform providing benchmark prices, on October 15, the benchmark price of lint cotton at SunSirs was 14,775.83 RMB/ton, down 0.76% from the beginning of this month (14,888.83 RMB/ton).

Application of SunSirs Benchmark Pricing：

Traders can price spot and contract transactions based on the pricing principle of agreed markup and pricing formula (Transaction price=SunSirs price + Markup).

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.